BUILDING WEALTH

Increasing retirement savings

Now that you've reached your peak earning years, it's time to save and invest more as your income grows. Consider taking that annual bonus or tax refund and putting it towards your retirement.
1

Maximize tax-advantaged retirement plan contributions

Tax-advantaged investments, like a 401(k) or a Traditional IRA, provide your savings and investments the potential to grow before taxes are deducted. Because contributions may be pre-tax, these accounts might reduce your income tax burden as well.
With Roth IRAs, contributions are made on an after-tax basis. Qualified distributions of earnings are generally federal and sometimes state income tax free.1

Contribution limits for 2023

  Under age 50 Age 50 and older2
.
Traditional3 or Roth IRA $6,500 $7,500
Maximum contributions    
401(k) plans $22,500 $30,000
Maximum employee contributions    
.

Traditional or Roth?

Answer a few questions and the IRA Selector Tool will help you find out which IRA may be right for you and how much you can contribute.
Find the right IRA
2

Boost savings with catch‑up contributions

If you're 50 or older2, you can contribute an additional $7,500 to your 401(k) and $1,000 to your Traditional or Roth IRA. It's one of the fastest ways to make strides toward your retirement savings goal.
Read:
Retirement savings catch up: Steps to consider now
3

Changing jobs? Consider your choices

Consolidating your retirement assets into one easy-to-manage account is simple with a Rollover IRA. Consider all of your choices and learn if a Rollover IRA may be right for you.4
Learn more:
Rollover IRAs
Read:
Changing jobs or retiring? Don't forget your retirement savings!
4

Rebalance your portfolio

Your investments should keep up with your financial goals and life priorities. Market changes can also affect the value of investments and your exposure to risk.
That's why it's a good idea to consider rebalancing your portfolio regularly, adjusting your allocations to the appropriate risk level.5
Read:
Portfolio rebalancing: Keeping your portfolio on track
Monitor your portfolio
Pie chart

Is it time to rebalance?

Find out if your current investment allocations match your target based on your investment preferences.
Learn more about the Asset Allocator™ tool
Calculator

How much will you need to retire?

Estimate how much you'll need and receive an action plan to help you get there.
Use the Personal Retirement Calculator
Looking for investment advice and guidance?
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4 You have choices about what to do with your 401(k) or other type of plan-sponsored accounts. Depending on your financial circumstances, needs, and goals, you may choose to roll over to an IRA or convert to a Roth IRA, roll over a 401(k) from a prior employer to a 401(k) at your new employer, take a distribution, or leave the account where it is. Each choice may offer different investments and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment (particularly with reference to employer stock), and provide different protection from creditors and legal judgments. These are complex choices and should be considered with care. For more information on rolling over your IRA, 401(k), 403(b) or SEP IRA, visit our rollover page or call a Merrill rollover specialist at 888.637.3343.

Important risk disclosures

1 Please note, however, that income-based restrictions are still in place regarding how much you can contribute to a Roth IRA. There is a single, 5-year holding period when determining whether earnings can be withdrawn as part of a qualified distribution free of federal (and, in most cases, state) income tax. This period begins January 1 of the year of the first contribution to any Roth IRA account.
2 You are treated as being age 50 or older if you will turn age 50 or older at any point during the calendar year.
3 Contributions to Traditional IRAs may be tax deductible. If you participate in an employer-sponsored retirement plan, the tax laws limit the deductibility of your contributions based on modified adjusted gross income (MAGI) ranges that are published annually and correspond to your federal tax filing status - if your MAGI is less than the lower limit, you are eligible for a full deduction for your contributions; if your MAGI is between the limits, you are eligible for a partial deduction; and if your MAGI is above the upper limit you are not eligible for a deduction. Anyone with earned income can make a contribution to an IRA, regardless of their age. Note that a spouse can also contribute on behalf of a spouse who has no earned income, provided the contributing spouse has enough earned income to cover the contributions. The Traditional IRA MAGI ranges are: $73,000-$83,000 in 2023 and $68,000-$78,000 in 2022 (single and head of household); and $116,000-$136,000 in 2023 and $109,000-$129,000 in 2022 (married filing jointly and qualified widow(er)). If you do not participate in an employer-sponsored retirement plan but your spouse does and your filing status is married filing jointly, the deductibility of your contributions is determined based on the MAGI range of $218,000-$228,000 in 2023 and $204,000-$214,000 in 2022.
Generally, if you are married filing separately, you are not entitled to a deduction for contributions to a Traditional IRA if your MAGI is $10,000 or more and you or your spouse participate in an employer-sponsored retirement plan. However, if you are married and file separately but do not live with your spouse at any time during the year, your maximum deduction is determined as if you were a single filer.
If neither you nor your spouse is covered by an employer retirement plan, the maximum deduction is either $6,500 or $7,500, depending on whether you are age 50 or older at any time during the year to which the contributions relate.
5 Asset allocation, rebalancing and diversification do not ensure a profit or protect against loss in declining markets.
Footnote
Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
A direct rollover occurs when you request that a rollover check be made payable directly to the new custodian for the benefit of your individual retirement account (IRA) or employer-sponsored retirement plan. A direct rollover is not subject to current tax or penalties.
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